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Donald Trump said he would impose 30% tariffs on Mexico and the EU from August 1, in a move that further undermines US relations with their two closest trading partners.
The president issued a new tariff threat in two letters posted to Strut Social on Saturday morning.
The letter to the EU followed a similar template to more than 20 other threatening Missives posted by the US president this week, but Trump also accused Mexico of “not stopping the cartel.”
Earlier this year, the US threatened Mexico and Canada with 25% tariffs, retaliated for Trump’s failure to halt illegal immigration, threatening the fatal flow of opioid fentanyl across its shared border with the US.
In a letter to Mexican President Claudia Sheinbaum, Trump acknowledged that the country is “helping him to secure the border.” However, he said the effort has not progressed sufficiently.
Both the EU and the letter to Mexico have denounced the US trade deficit with countries for fresh tariffs. “The trade deficit is a huge threat to our economy and, in fact, our national security!” Trump wrote.
The fresh collection outlook of two closest US allies and trading partners will curb a turbulent week in which Trump threatens more than 20 countries with tariffs and announces an imminent 50% tax on copper.
The letter to the EU comes despite the fact that European officials spent weeks between Brussels and Washington hashing deals that EU countries could accept.
The two sides are working on a plan to reduce the 25% tariff on vehicles and are considering an agreement to eliminate the taxation of spirits, aircraft and parts. The EU is also ready to reduce its trade surplus of 188 million euros in its goods by committing to buying more US weapons and liquefied natural gas.
So far, the EU has not retaliated against Trump’s tariffs. This includes 25% collection on automobiles and automobile parts, 50% tariff on steel and aluminum, and 10% tariff on most goods.
On Saturday, European Commission President Ursula von der Leyen said that EU enforcers would “take” Trump’s letters.
“Imposing a 30% tariff on EU exports would disrupt the essential transatlantic supply chain, as it would undermine businesses, consumers and patients on both sides of the Atlantic,” she said.
The EU “consistently prioritized the negotiated solutions” with the US and was “prepared to work towards an agreement by August 1st.” The EU was also ready to impose a counterargument “if necessary,” she added.
According to one EU diplomat who was explained about the discussion between Brussels and Washington, there could be a potential time left for discussions on a 30% threat-compromise agreement, but it looked like a negotiation tactic.
Ambassadors of the EU’s 27 member states will meet on Sunday afternoon to discuss the threat, people who explained the plan said.
French President Emmanuel Macron expressed “very strong disapproval” of the threat, urging Brussels to speed up “preparing for reliable measures.”
In a statement, Italian Prime Minister Giorgia Meloni called for “good intentions… to reach a fair agreement that can strengthen the West as a whole.”
“It’s pointless to launch a trade war between both sides of the Atlantic,” she said, adding that both sides should avoid “polarization.”
The Mexican government said on Saturday that it had already negotiated with the US on a “alternative” before the deadline and believed the decision was unfair. Sheinbaum has long emphasized the deal against retaliation.
Mexico, along with Canada, has already secured a significant exemption from Trump’s most dramatic taxation, avoiding taking a hit with mutual tariffs on April 2nd.
After announcing a 25% tariff on the two biggest trading partners in March, Trump later reverted the attack, saying the tariffs would not apply to goods complying with the terms of the 2020 free trade agreement with neighbors.
The exemption means that between January and March of this year, about 87% of Mexican goods were not subject to US tariffs, according to the Mexican Ministry of Economy.
However, the country will still be hit by Trump’s 50% tariff on all steel and aluminum imports.
The Trump administration has also launched a national security investigation that could lead to tariffs on chips, wood, aerospace components, pharmaceuticals and home appliances.
Additional Reports by Alice Hancock and Henry Foy of Brussels by Christine Murray of London
